Blockchain is digital ledger system in which transactions made in bitcoin or another cryptocurrency is digitally recorded chronologically and publicly whenever a cryptocurrency is bought or sold. Making use of this sophisticated technology is something that yields tremendous benefits. But there are some hesitations the world is facing in the adoption of blockchain. But then there is Europe which is leading this race of making judicial use of blockchain. This is due to the presence and dominance of the private sector which has a strong grip over institutional investors and infrastructure. According to a report by Nasscom, the blockchain is bringing about a revolution and this is being initiated by the efforts of the public sector. The banking, insurance (BFSI) and financial services are the leading domains that boost up the usage of blockchain upto a 50%, as per the reports. The places where large usage of blockchain all come from the Indian public sector like medical record maintenance, land registry maintenance etc.
Something noteworthy has been implemented via the banking sector making use of blockchain on a large scale and this is being called the first of it’s kind application in Asia. This involves Yes Bank, acting as an issuing and payment agent (IPA), which played a role to induce the facilitation of a Commercial Paper (CP) amounting to Rs. 100 crore. This task was executed and completed by bringing into action the blockchain technology for the industry giant Vedanta. What this shows is a magnificent example of a private bank issuing a blockchain for a public limited company. To add in more input, the transaction was successfully completed in partnership with US based MontaGo.
The secret to MontaGo success is it’s solution infusing back by Cords Enterprise, which is a technology provider by R3 and blockchain enterprise software firm.
Senior group president and global head- Transaction Banking Group, Yes Bank, Asit Oberoi, in praise of the eminent process which took place by making use of the blockchain technology said that this made sure that there was a considerably less turnaround time for issuance and recovery, and for obtaining permanent, trustworthy and unexploitable records of the whole process of document transactions. This as a result would lead to a lot of benefits and simplify the process further and hence, minimize risk of operations, recovery process, the risk of real time visibility of the CP issuance and bounce back and for a joint network for all the participants in the CP issuance.
Oberoi commenting on blockchain ledger, says “By working on this implementation with Vedanta, we built a bigger framework for other customers as well for the future. Now transactions can happen within an hour irrespective of the size. It involves a lot of data, risk management control and complex analytics,”. Looking at the many benefits that the blockchain usage has, oberoi explains that the fruits of this technological advancement brings about a swiftness and a shift to the highly process oriented digital banking. “We now have data analytics experts, data miners and end-to-end engineering experts because of such technologies. This will also hold good when ‘digital banks’ start coming up,” he adds.
“We are a tech company working in the banking space and we have to comply with a lot of guidelines in both tech and banking spaces. We are also working closely with Nasscom who can in turn recommend in making these guidelines which would increase the penetration rate of these technologies and help develop local talent here,” Oberoi says
Vinod Kumar, CEO and MD, Subex, says that, “Using blockchain to validate identities of those who authorise payments across the globe is a single major use case towards ensuring ‘digital trust for brands. Most of this work is at proof of concept level today and will soon roll out when we sort out unit economics of implementing the same,”.
India has stepped forward to make the utilization of blockchain on a large scale. There are giants like Tech Mahindra, a global commander that aces the game at providing IT solutions, digital technologies, BPO and business related consultancy services declared publicly that it had come together to join hands with the Abu Dhabi Department of Urban Planning and Municipalities (DPM). in this venture the implementation of next gen technologies like Blockchain and SmartHub digital services help to serve a wider segment of citizens enhancing customer satisfaction.
Since now that the Indian public sector is drawing on blockchain, the homegrown players can join hands and help to boost the implementation of blockchain on a national level; rendering benefits of this technology on a large scale.
source – financialexpress